Air Products and Chemicals (APD) AI Stock Analysis

• Market Cap: $63.81B
• Dividend Yield: 2.92%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: -0.52%
• EPS Growth: -110.29%
• Country: US
• Employees: 21,850
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 3.16
• Shares Outstanding: 222,656,000
• 10 Day Avg. Volume: 1,675,322
• 30 Day Avg. Volume: 1,293,827
• PEG Ratio: 1.40
• Price to Book (P/B): 4.04
• Price to Sales (P/S): 5.05
• P/FCF Ratio: -16.14
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 6.63
• Enterprise Value/Gross Profit: 20.96
• Enterprise Value/Ebitda: 57.25
• 1Y Price Target: $290.13
• Price Target Upside: 1.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $282.00 ▼(-1.60% Downside)

APD’s score is held back primarily by weakened TTM financial performance (net loss and deeply negative free cash flow) and higher leverage, despite healthy operating cash flow. Offsetting factors include constructive price momentum and a generally positive earnings-call outlook with reaffirmed EPS guidance and capital-discipline actions, while valuation is mixed due to a negative P/E despite a solid dividend yield.

Positive Factors

Cash-generative base business

Air Products' core industrial-gases business continues to produce strong operating cash flow and healthy gross margins. That durable cash conversion from long-term supply contracts supports funding project spend, dividends and partnerships over the next several quarters.

Leader in hydrogen & space supply

Firm positioning in specialized hydrogen and liquid-hydrogen supply (notably NASA contracts) creates high barriers to entry and multi-year revenue visibility. Market share in the space segment and scale in hydrogen underpin structural growth in high-value, long-duration contracts.

Capital discipline and shareholder commitment

Management's focus on cutting ~$1B of CapEx, reaffirming guidance and maintaining steady dividend increases reflects durable capital-allocation discipline. That track record sustains investor confidence and prioritizes shareholder returns across multi-year project cycles.

Negative Factors

Deeply negative free cash flow

FCF turning deeply negative signals spending outpacing operating cash generation due to a heavy investment cycle. Sustained negative FCF strains liquidity, increases reliance on external funding and limits flexibility to fund projects or buffer shocks over the next several quarters.

Rising leverage and balance-sheet pressure

Material increase in leverage reduces financial flexibility and heightens refinancing and covenant risk during a heavy CapEx window. Although deconsolidation is planned, current reported leverage constrains capacity to absorb cost overruns or slower cash conversion in the medium term.

Execution and project risk on large clean-energy builds

Major low-emission projects face conditional FIDs, partner and CCS dependencies, regulatory exposure and prior equipment cost overruns. Delays or cost escalation can push out returns, prolong consolidation impacts and raise financing needs across the 2–6 month horizon and beyond.

Air Products and Chemicals Business Overview & Revenue Model

Company Description

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and services worldwide. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, syngas; specialty gases; and equipment for the production or processing of gases comprising air separation units and non-cryogenic generators for customers in various industries, including refining, chemical, gasification, metals, manufacturing, food and beverage, electronics, magnetic resonance imaging, energy production and refining, and metals. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. Air Products and Chemicals, Inc. has a strategic collaboration with Baker Hughes Company to develop hydrogen compression systems. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.

How the Company Makes Money

Air Products generates revenue primarily through the sale of industrial gases and related equipment. Its revenue model is based on long-term contracts and supply agreements, which provide stable cash flows. Key revenue streams include the sale of gases to customers in sectors such as refining, petrochemicals, and manufacturing, as well as the development and operation of large-scale gas production facilities. Additionally, the company benefits from strategic partnerships and joint ventures, particularly in hydrogen production and carbon capture technologies, which enhance its market position and drive growth. Factors contributing to its earnings include the increasing demand for clean energy solutions, technological advancements in gas applications, and expanding markets in emerging economies.

Air Products and Chemicals Financial Statement Overview

Summary

Underlying operations still generate solid operating cash flow (~$3.35B TTM) and gross margin remains respectable (~31%), but TTM profitability deteriorated sharply to a net loss (net margin ~-3.3%) and free cash flow is deeply negative (~-$1.56B). Leverage has also risen (debt-to-equity ~1.23), reducing flexibility during a heavy investment period.

Income Statement

TTM (Trailing-Twelve-Months) performance shows a clear deterioration in profitability: revenue grew strongly (+142.1%), but the company reported negative operating profit and a net loss (net margin about -3.3%), indicating costs/charges overwhelmed the top-line growth. This contrasts sharply with 2023–2024, when margins and earnings were solidly positive, so the recent swing suggests elevated volatility and execution/one-time risk. Gross margin remains respectable (~31%), but the near-term earnings profile is weak.

Balance Sheet

The balance sheet is mixed. Leverage has risen meaningfully versus prior years, with debt-to-equity around 1.23 in the latest periods (up from ~0.56–0.88 historically), reducing flexibility. Equity remains sizable (~$15.4B TTM) and the asset base is large (~$41.2B), but returns to shareholders turned negative in TTM due to the net loss, reversing strong prior-year returns. Overall: adequate scale and capitalization, but leverage is trending the wrong way.

Cash Flow

Cash generation from operations remains healthy (about $3.35B TTM), but free cash flow is deeply negative (about -$1.56B TTM) and has deteriorated sharply (free cash flow down ~58.6% TTM), implying heavy investment and/or weaker cash conversion. The company is producing cash from its core operations, yet spending requirements are currently outpacing it, which can pressure funding needs—especially alongside higher leverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.04B	12.10B	12.60B	12.70B	10.32B
Gross Profit	3.78B	3.93B	3.77B	3.36B	3.14B
EBITDA	1.34B	6.49B	4.42B	4.22B	3.97B
Net Income	-394.50M	3.83B	2.30B	2.26B	2.10B
Balance Sheet
Total Assets	41.06B	39.57B	32.00B	27.19B	26.86B
Cash, Cash Equivalents and Short-Term Investments	1.86B	2.98B	1.95B	3.30B	5.80B
Total Debt	18.41B	15.01B	11.03B	8.33B	8.22B
Total Liabilities	23.71B	20.90B	16.34B	13.49B	12.77B
Stockholders Equity	15.02B	17.04B	14.31B	13.14B	13.54B
Cash Flow
Free Cash Flow	-3.77B	-3.15B	-1.42B	303.70M	877.70M
Operating Cash Flow	3.26B	3.65B	3.21B	3.23B	3.34B
Investing Cash Flow	-6.58B	-4.92B	-5.68B	-3.86B	-2.73B
Financing Cash Flow	2.21B	2.62B	1.37B	-1.00B	-1.56B

Air Products and Chemicals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 286.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APD, the sentiment is Positive. The current price of 286.59 is above the 20-day moving average (MA) of 265.46, above the 50-day MA of 255.01, and above the 200-day MA of 268.19, indicating a bullish trend. The MACD of 5.75 indicates Negative momentum. The RSI at 72.20 is Negative, neither overbought nor oversold. The STOCH value of 93.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APD.

Air Products and Chemicals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHW	73 Outperform	$91.45B	35.05	59.39%	0.98%	0.96%	1.96%
PPG	68 Neutral	$28.26B	17.22	―	2.71%	-12.98%	-11.34%
ECL	66 Neutral	$81.62B	40.62	21.73%	1.01%	1.38%	-2.54%
LIN	66 Neutral	$221.02B	31.04	18.24%	1.41%	1.45%	13.21%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
DD	60 Neutral	$20.04B	-25.96	-0.46%	1.74%	2.42%	-196.54%
APD	57 Neutral	$63.81B	-190.98	-2.03%	2.92%	-0.52%	-110.29%

Air Products and Chemicals Corporate Events

Air Products Shareholders Approve Directors, Pay and Auditor

At its 2026 Annual Meeting of Shareholders held on January 28, 2026, Air Products and Chemicals, Inc. reported that approximately 91 percent of its outstanding common stock was represented, establishing a quorum for key governance decisions. Shareholders elected all nominated directors to serve until the 2027 annual meeting, strongly approved on an advisory basis the compensation of the company’s named executive officers with over 96 percent of votes cast in favor, and ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending September 30, 2026, reinforcing continuity in the company’s leadership, oversight, and financial auditing framework.

The most recent analyst rating on (APD) stock is a Hold with a $257.00 price target. To see the full list of analyst forecasts on Air Products and Chemicals stock, see the APD Stock Forecast page.

Air Products Board Member Lisa Davis to Retire

On November 23, 2025, Lisa A. Davis announced her decision to retire from the Air Products Board of Directors following the 2026 Annual Meeting of Shareholders. Davis, who has served since 2020, will continue her roles on key committees until her retirement. Her departure comes without any disagreements with the company, and her contributions have been praised for enhancing the board’s strategic oversight.

The most recent analyst rating on (APD) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on Air Products and Chemicals stock, see the APD Stock Forecast page.